Bitcoin fell sharply while global stock markets recorded significant losses after Nvidia’s results and a shift in expectations about the next Federal Reserve rate cut. The cryptocurrency, sensitive to liquidity and monetary policy expectations, retraced in a move synchronized with the correction in the technology sector.
Nvidia reported fiscal third quarter 2026 revenue that rose 62% to $57 billion and provided guidance for the fourth quarter around $65 billion ±2%, according to its financial report; nonetheless, its shares closed nearly 3% lower after an initial rebound. The pullback was interpreted by the market as a reassessment of AI sector valuations, amplified by a widespread decline in technology stocks. Major indexes experienced notable moves: the S&P 500 lost 1.6%, the Nasdaq Composite fell 2% and the Dow Jones 0.8% in the session of November 20, 2025.
Data from previous sessions also showed declines (S&P -0.83%, Nasdaq -1.21% and Dow -1.07% on November 18), which fed the perception of a broader down leg. Stocks linked to AI infrastructure and semiconductors were especially hit: AMD -7.8%, GE Vernova -6.3%, Vertiv -6.5% and Sandisk -20.3%; additionally, Amazon fell 4.43% and Microsoft 2.7%. The Russell 2000 retreated 1.8%, confirming weak market breadth. The volatility index VIX rose 11.7% to 26.42. The VIX, CBOE index, measures the 30-day implied volatility expectation of the S&P 500. Market sentiment turned “risk-off”, with balanced-weight ETFs also down (RSP -1.2%, QQEW -2.2%), suggesting a widespread withdrawal from risk positions.
Impact on Bitcoin and macro context
Bitcoin fell as much as 6% to $85,350, marking a seven-month low and heading toward its worst month since 2022. After a momentary rebound following Nvidia’s initial surprise, the cryptocurrency capitulated when the odds of a December rate cut collapsed: from a market-implied probability near 94% to just 39.6%, according to CME FedWatch. That adjustment in expectations, boosted by a mixed jobs report and persistent inflationary risks, reduced appetite for risk assets and amplified selling in crypto.
Bitcoin’s reaction underscores its strong correlation with liquidity and monetary policy in stress episodes: past movements associated with rate announcements have caused swings between 10% and 15%, according to the session record. In the absence of public derivatives metrics in this report, the operational takeaway for traders is clear: greater price dispersion and sensitivity to new Fed cues imply the need to manage leverage and review hedges.
The simultaneity between a robust earnings read from Nvidia and the retreat in Fed rate-cut expectations triggered a synchronized correction in stocks and Bitcoin, revealing the predominance of the liquidity cycle over sector narratives.
